11. Building Information Systems

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MANAGING KNOWLEDGE FOR THE DIGITAL FIRM
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Essentials of Management Information
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OBJECTIVES

• Why do businesses today need knowledge management
  programs and systems for knowledge management?
• Which information system applications are most
  useful for distributing, creating, and sharing
  knowledge in the firm?
• What are the business benefits of using
  artificial intelligence technology for knowledge
  management?

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OBJECTIVES

• How can businesses use expert systems and
  case-based reasoning to capture knowledge?
• How can organizations benefit from using use
  neural networks and other intelligent techniques?

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MANAGEMENT CHALLENGES

• Designing knowledge systems that genuinely
  enhance organizational performance
• Creating robust expert systems

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KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Organizational Learning and Knowledge Management

• Organizational learning
• Creation of new standard operating procedures and
  business processes
• Knowledge management
• Set of processes
• Creates, gathers, stores, maintains, and
  disseminates knowledge

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KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Organizational Learning and Knowledge Management

• Chief Knowledge Officer (CKO)
• Senior executive in charge of organizations
  knowledge management program

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KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Systems and Infrastructure for Knowledge
Management

• Tacit Knowledge
• Expertise and experience not formally documented
• Best Practices
• Successful solutions or problem-solving methods
  developed by specific organization or industry

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KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Systems and Infrastructure for Knowledge
Management

• Organizational Memory
• Stored learning from organizations history
• Used for decision making and other purposes

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KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
IT Infrastructure for Knowledge Management
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INFORMATION AND KNOWLEDGE WORK SYSTEMS
Information Work

• Consists of creating or processing information
• Divided into knowledge workers and data workers

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INFORMATION AND KNOWLEDGE WORK SYSTEMS
Distributing Knowledge Office and Document
Management Systems

• Office systems
• Manage and coordinate work of data and knowledge
  workers
• Connect work of local information workers with
  all levels and functions of organization
• Connect organization to external world
• Example Word processing, voice mail, and imaging

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INFORMATION AND KNOWLEDGE WORK SYSTEMS
The Three Major Roles of Offices
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INFORMATION AND KNOWLEDGE WORK SYSTEMS
Typical Office Systems

• Document imaging systems
• Convert documents and images into digital form
• Can be stored and accessed by the computer
• Jukebox
• Device for storing and retrieving many optical
  disks

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INFORMATION AND KNOWLEDGE WORK SYSTEMS
Components of an Imaging System
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INFORMATION AND KNOWLEDGE WORK SYSTEMS
Web Publishing and Document Management
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INFORMATION AND KNOWLEDGE WORK SYSTEMS
Creating Knowledge Knowledge Work Systems

• Knowledge Work Systems (KWS)
• Information system
• Aid knowledge workers in creation and integration
  of new knowledge

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INFORMATION AND KNOWLEDGE WORK SYSTEMS
Changes in the Construction Project Management
Process
Figure 10-5
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INFORMATION AND KNOWLEDGE WORK SYSTEMS
Requirements of Knowledge Work Systems

• Specialized tools
• User-friendly interface

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INFORMATION AND KNOWLEDGE WORK SYSTEMS
Requirements of Knowledge Work Systems
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INFORMATION AND KNOWLEDGE WORK SYSTEMS
Examples of Knowledge Work Systems

• Computer-aided design (CAD)
• Virtual reality systems
• Virtual Reality Modeling Language (VRML)
• Investment workstations

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INFORMATION AND KNOWLEDGE WORK SYSTEMS
Sharing Knowledge Group Collaboration Systems
and Enterprise Knowledge Environments

• Groupware
• Intranets and Enterprise Knowledge Environments
• Enterprise information portals
• Teamware

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INFORMATION AND KNOWLEDGE WORK SYSTEMS
An Enterprise Information Portal
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ARTIFICIAL INTELLIGENCE
What is Artificial Intelligence?

• Effort to develop computer-based systems that
  behave as humans

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ARTIFICIAL INTELLIGENCE
Why Business is Interested in Artificial
Intelligence

• Artificial Intelligence
• Stores information in active form
• Creates mechanism not subjected to human feelings
• Eliminates routine and unsatisfying jobs
• Enhances organizations knowledge base
• Generates solution to specific problems

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ARTIFICIAL INTELLIGENCE
The Artificial Intelligence Family
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ARTIFICIAL INTELLIGENCE
Capturing Knowledge Expert Systems

• Knowledge Base
• Rule-based Expert System
• Rule Base
• Knowledge Frames

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ARTIFICIAL INTELLIGENCE
Rules in an AI Program
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ARTIFICIAL INTELLIGENCE
Capturing Knowledge Expert Systems

• AI shell
• Inference Engine
• Forward Chaining
• Backward Chaining

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ARTIFICIAL INTELLIGENCE
Frames to Model Knowledge
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ARTIFICIAL INTELLIGENCE
Inference Engines in Expert Systems
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ARTIFICIAL INTELLIGENCE
Building an Expert System

• Knowledge engineer
• Specialist eliciting information and expertise
  from other professionals
• Translates information into set of rules, or
  frames, for an expert system

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ARTIFICIAL INTELLIGENCE
Examples of Successful Expert System

• BlueCross BlueShield of North Carolina
• Countrywide Funding Corp.

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ARTIFICIAL INTELLIGENCE
Organizational Intelligence Case Based Reasoning

• Case-based Reasoning (CBR)
• Artificial intelligence technology
• Represents knowledge as database of cases and
  solutions

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ARTIFICIAL INTELLIGENCE
How Case-Based Reasoning Works
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OTHER INTELLIGENT TECHNIQUES
Neural Networks

• Hardware or software emulating processing
  patterns of biological brain
• Put intelligence into hardware in form of a
  generalized capability to learn

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OTHER INTELLIGENT TECHNIQUES
Biological Neurons of a Leech
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OTHER INTELLIGENT TECHNIQUES
Artificial Neural Network with Two Neurons
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OTHER INTELLIGENT TECHNIQUES
A Neural Network
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OTHER INTELLIGENT TECHNIQUES
Fuzzy Logic

• Rule-based AI
• Tolerates imprecision
• Uses nonspecific terms called membership
  functions to solve problems

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OTHER INTELLIGENT TECHNIQUES
Implementing Fuzzy Logic Rules in Hardware
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OTHER INTELLIGENT TECHNIQUES
Genetic Algorithms

• Problem-solving methods
• Promote evolution of solutions to specified
  problems
• Use a model of living organisms adapting to their
  environment

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OTHER INTELLIGENT TECHNIQUES
The Components of a Genetic Algorithm
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OTHER INTELLIGENT TECHNIQUES
Hybrid AI Systems

• Integration of multiple AI technologies into a
  single application
• Takes advantage of best features of technologies

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OTHER INTELLIGENT TECHNIQUES
Intelligent Agents

• Software programs
• Use built-in or learned knowledge base to carry
  out specific, repetitive, and predictable tasks

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